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Scottish Trust Deed Forum
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Topic starter
23/04/2013 10:16 am
In line with the proposed Trust Deed changes, the undernoted was discussed:
* Before Petitioning for Sequestration ( and possibly entering into a Trust Deed) the individual will need to have received advice on all options from an approved Money Advisor
* The period of sequestration will be 48 months. There was talk of the requirement for 48 contributions. It wasn't clear on this point if there was a period of unemployment etc, then the sequestration may be extended to pick up missed payments. I'm seeking clarification on this point.
* Removal of Automatic Discharge and Offer of Composition.
* Claims need to be received within 120 days of notification.
It will be interesting to see how this pans out with the finer details.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
23/04/2013 2:40 pm
Thanks for adding this information Mark.
It will be interesting to see how all of this develops over the coming months.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
23/04/2013 9:11 pm
In relation to claims period, what is the current timeframe?
What is the Offer of Composition and will we miss it (Is it a positive for new cases?)
24/04/2013 9:55 am
There isn't really a timeframe for claims, they can be made at any time during the term of the sequestration.
Composition is where a debtor is able to find a lump sum representing a proportion of the debt owed and offer it to creditors, in return for their discharge from the sequestration. It is very rarely used - especially since discharge was brought down to 1 year anyway - so I cannot imagine anybody will miss it.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
24/04/2013 11:21 am
The removal of the automatic discharge is an interesting one. Under our contact with the Accountant in Bankruptcy we deal with a large volume of Sequestration cases as their agent and we can find it difficult sometimes to deal with individuals through lack of co-operation, tracing debtors and generally administering their case as a result.
Having the automatic discharge removed may assist IP's deal with non co-operative debtors and also debtors whose whereabouts are unknown a little easier.
Not just the threat of the deferral of discharge but that the debtor may also have to co-operate to receive their discharge could potentially be a useful tool when trying to administer the case.
David is not currently posting in the Trust-Deed.co.uk forum
27/11/2013 10:20 pm
Our sequestration started Dec 2012, will these changes delay discharge in December 2013?
We had several properties valued pre-sequestration and no equity was left in them.
I can't remember if we were given a document stating that zero equity meant the IP had no interest. If we were, will I be able to get a copy of the agreement on that.
If we weren't, will the properties be sold even although there is still no equity.
We will carry on with payments for 2 more years, can the properties be sold for the benefit of creditors during the 2 years or for longer?
Topic starter
28/11/2013 9:43 am
The process with most firms is to value the properties at the start and no further valuations will be carried out. Therefore if there is no equity at the start then the agreement stands on the basis that the sequestration continues on what was agreed by the trustee and the individual at the start.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
28/11/2013 2:05 pm
The changes haven't happened yet,RBSB, and won't be until spring 2015 probably. Even then they will only affect new sequestrations after that date.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
13/12/2013 10:19 pm
thanks Mark and Kevin!
